Ryan Stancil,
Editor
June 27, 2022
With primary elections right around the corner, I found myself researching the candidates for governor here in my home state of Maryland.
A local newspaper recently sent the candidates a survey asking them where they stood on specific issues. Eventually, it came to the question of energy production and what forms they supported. Some, including the likely candidate for the democratic nomination, supported nuclear power’s role in shaping the state’s clean energy future.
Maryland only has one nuclear power plant, but it has two reactors that provide about 41% of the state’s electricity and nearly 80% of its emission-free electricity. There are currently discussions to build a third reactor.
All of this, of course, comes at a time when nations are coming around to using more nuclear power to generate electricity. Climate change is worsening and renewables like wind and solar are not viable options on their own. Leaders are realizing that nuclear power is the only way to fill the gap.
That’s why, according to recent research, global uranium production is set to reach 63.16ktU (metric tonnes) by 2025. That’s a growth rate of 5% between 2021 and 2025.
In that period, the largest uranium producer in the world, Kazakhstan, will likely play the largest role in meeting that demand. That will probably change over time since that country is a satellite state of Russia.
In its place, we’re likely to see countries like Australia and Namibia step up to help fill that gap. Those countries have already started bringing old mines back online, and countries wanting to get away from Russia will take uranium from wherever they can get it.
Here in the US, as feelings on nuclear power turn around, officials are putting plans in place to buy domestically. Just recently, the Biden administration put forth a plan to buy $4.3 billion of uranium from domestic suppliers.
One of the biggest hurdles to that plan is that the US only has one uranium enrichment facility. There is, however, proposed legislation to provide billions in funding to expand enrichment capabilities.
So if it passes, the US will have more facilities for turning uranium into reactor fuel so that the lights can stay on and emissions will go down.
Widespread adoption of nuclear power faces some challenges. Some people still buy into the stigmas about its dangers and, as pointed out, there are logistical details to straighten out.
Still, it’s become clear that nuclear’s role in future power generation is absolutely necessary at this point.
That’s why uranium prices are going to continue to climb as nations build more capacity and the public becomes more accepting of nuclear energy.
As more companies get back into the game and bring shuttered mines back online, you’re going to see the values of those companies rise in a way that outpaces most other sectors.
Things are just getting started. Reopening mines, building plants, and reshaping supply chains takes years. That means you have the chance to get into early-stage companies that will be pulling the yellow metal out of the ground.
And while there are plenty of miners and explorers overseas, there’s one right here on US soil that is looking to corner the market.
It’s a small company trading for cheap right now, but that’s not going to last.
Widespread adoption of nuclear power is inevitable and this company — and its shareholders — will benefit as a result.
Here’s how you can get in on that company now for the biggest benefit.
Ryan Stancil
Editor, Daily Profit Cycle